It could be either. In some cases items are discontinued because the manufacturer no longer exists (ex. Jollies Silicone) or the manufacturer does not offer the item any longer.
In other cases, Eden may simply choose to discontinue an item. It could be from lack of sales volume, pricing, limited availability or any number of unknown reasons. (ex. Liberator). But yes, "discontinued" does mean discontinued. I have seen a few items come back from the dead, but it is quite rare.

I think most cases, eden stops carrying it. I know I have seen toys on other sites that eden stopped carrying. If you found something that is labeled discontinued, just plan on forgetting about it. It will not be coming back to eden.

Sometimes it does and sometimes it does not. There have been some things that were disconnected and next thing you know it was back on here. Since I have been here I saw a couple things gone that have come back in. The Devine playchest being one of them.

Sometimes it does and sometimes it does not. There have been some things that were disconnected and next thing you know it was back on here. Since I have been here I saw a couple things gone that have come back in. The Devine playchest being one of
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Sometimes it does and sometimes it does not. There have been some things that were disconnected and next thing you know it was back on here. Since I have been here I saw a couple things gone that have come back in. The Devine playchest being one of them.

The Playchest is actually one that the manufacturer originally decided to discontinue, but then brought back because of popular demand.

For whatever reason, some items get listed as discontinued when they are actually just out of stock. If you are unsure, you can always submit a support ticket.